Midterm calculations prep

Calculate the consumer surplus in the market. Assume supply and demand are both unit-elastic.

Assume rice and bread are substitute goods. Calculate the cross price elasticity for bread.

Price of Rice | Demand for Bread

$4/kg | 8 kg

$9/kg | 14 kg

Assume Socheata spends $10 per day on food. At the restaurant dumplings are $2.00 each and noodles are $1.00 each. Socheata should order _ dumplings and _ noodles to earn ___ total utility.

Calculate the total surplus in this market. Assume both supply and demand are unit-elastic.

How many bananas should you eat if they are free?

If the price of bananas is $5, how many should you buy and eat?